West Australian based shipbuilder, Austal Limited says it has been awarded two more contracts from the US Navy valued at more than $1.5billion.
Austal told the ASX yesterday that the construction contracts are to build two additional Independence-class Littoral Combat Ships (LCS).
These ships will be the sixteenth and seventeenth ships in the class and the specific value of each contract is under the congressional cost cap of $US584 million for each vessel (around $A1.6 billion for the two vessels).
The 127 metre, frigate-sized vessel was originally designed in the Austal center for excellence in maritime design, based in Henderson, Western Australia.
The vessel design has been transferred to Austal USA and construction is being carried out in Austal’s pure purpose-built yard based in Mobile, Alabama.
“This latest order from US Navy is a tremendous endorsement of the Austal LCS platform and further evidence of the important role Austal plays in building the United States Navy” Austal CEO, David Singleton said in a statement yesterday.
“We remain dedicated to building these ships safely, timely and with the quality and craftsmanship that Austal has built our reputation on,” he said.
Austal says it has handed over three LCS vessels to the USNavy this year, all.
Construction of LCS 32 is scheduled to begin in 2019 with the delivery of LCS 34 expected to occur in mid fiscal year 2023. Austal is also building Expeditionary Fast Transport (EPF) class vessels for the US Navy
It said yesterday it had delivered the future USS Charleston (LCS 18) to the Navy last month and is scheduled to deliver USNS Burlington (EPF 10) before the end of the year.”
“With eight LCS and nine EPFs already delivered, Austal-built ships are impacting worldwide operations,” the company added.
Austal shares were steady at $1.92 yesterday.
